UK-based food manufacturer Bakkavor has proposed the closure of a factory in Wigan that employs around 750 people.
The prepared-foods business revealed yesterday (4 September) that its Bakkavor Meals site in Ince in north-west England is unprofitable and would require “significant investment”.
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A Bakkavor spokesperson said: “We’ve undertaken a thorough review of options and despite our best efforts it has not been possible to find a viable solution. Furthermore, we believe there is no realistic prospect of being able to do so in the foreseeable future.”
A consultation to close the Wigan factory, one of Bakkavor’s 21 manufacturing sites in the UK, will begin at the end of September and last for a minimum of 45 days.
Alongside the publication of the group’s first-half results today (5 September), Bakkavor said: “Should the consultation lead to closure, we would expect to exit circa £80m ($105m) of business in H1 25.”
The publicly-listed company added: “Our priority now is focused on working through the consultation process with all colleagues during this difficult time.”
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By GlobalDataBakkavor, meanwhile, upgraded its forecast for its full-year operating profit to £108m to £112m, up from a previous range of £103m to £108m.
The company also announced a change in CFO as Ben Waldron will step down from the role and leave the business. He will be succeeded by UK finance director Lee Miley.
The manufacturer’s reported revenue rose 2.8% in the six months to 29 June, reaching £1.12bn. Like-for-like revenue grew 3.8% to £1.12bn.
In Bakkavor’s home market, reported and like-for-like revenue grew 4.8% to £957.4m while operating profit rose 17% to £52.4m.
Total group operating profit jumped 27% to £58.8m for the period, which Bakkavor attributed to “momentum from our 2023 restructuring activity”.
Bakkavor’s net profit was up year-on-year from £25.1m to £35.2m.
CEO Mike Edwards said: "This has been a strong first half for the group, with momentum from our 2023 restructuring activity continuing to support our performance in 2024."
